Wedbush Downgrades AsiaInfo-Linkage (ASIA) to Neutral; Inline Q4, but Margins Could Temper 2012 Outlook

February 10, 2012 7:54 AM EST
ASIA Hot Sheet
Rating Summary:
    3 Buy, 6 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wedbush downgraded AsiaInfo-Linkage (NASDAQ: ASIA) from Outperform to Neutral, price target lowered from $16 to $13.

Wedbush analyst says, "We expect Q4 results and Q1 guidance will likely be inline with expectations. While we are encouraged by growth prospects supported by domestic subscriber growth, international expansion, and the cable market, we retain some concerns over wage inflation and impact to margins. While the CITIC offer details are uncertain, we would not expect a significant premium from current levels, as we believe shares are near fair value."

Wedbush lowers FY12 EPS estimate from $1.47 to $1.43.

For an analyst ratings summary and ratings history on AsiaInfo-Linkage click here. For more ratings news on AsiaInfo-Linkage click here.

Shares of AsiaInfo-Linkage closed at $11.89 yesterday, with a 52 week range of $6.21-$22.91.


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